annual budget review · 12/31/2019 · account groupings year-to-date revised forecast variance...

February 2020

Annual Budget Review

For the Period 1 July 2019 to 31 December 2019

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2

Executive Summary 5

Statutory Obligations 11

Net Current Funding Position 13

Statement of Budget Review 15

Service Area Variance Reporting 21

Capital Expense Items 58

Significant Accounting Policies 71

Contents

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4

Executive Summary

5

Executive Summary

The 2019-2020 Annual Budget Review for the Town of Victoria Park commenced on Wednesday 23rd October 2019 with a kick-off meeting for all

responsible officers, and concluded with the distribution of the budget review agenda item on 27 February 2020 to enable Council consideration at its

ordinary meeting Tuesday 17 March 2020.

Key Principles

The review process was undertaken having regard for:

• Actual revenues and expenditures for the first six months of the financial year together with committed expenses;

• Necessary indicators to inform forecasts for the remainder of the year;

• Forecast revenue and expenditure levels for the remaining six months of the year;

• Anticipated capacity to complete works and deliver services by 30 June; and

• The more significant variances to the budget rather than the many minor variances which largely balance out.

Explanation of Forecast Variances

The 2019-2020 Annual Budget Review forecasts a $nil year-end surplus position (the Adopted 2019-2020 Annual Budget also had a year-end surplus of

$nil).

The approach taken to identifying and quantifying forecast variations to the Town's Annual Budget has been to review each line item of budgeted revenue

and expenditure, including commitments, as follows:

Adopted Budget Position

LESS Year-to-date actual and commitments

PLUS Estimated actuals to 30 June

EQUALS Forecast year-end variation to budget

In overview terms, the forecast year-end position consists of:

• Total Operating Revenue forecast to be less than the budget (i.e. unfavourable) by $1,948,451.

• Total Operating Expense forecast to be greater than the budget (i.e. unfavourable) by $5,589,282.

• Total Capital Expense forecast to be less than the budget (i.e. favourable) by $3,672,446.

• Total Non-Operating Revenue forecast to be more than the budget (i.e. favourable) by $17,466,500.

• Total Non-Operating Expense forecast to be more than the budget (i.e. unfavourable) by $15,563,598.

• Non-Cash adjustments forecast to be more than budgeted (i.e.unfavourable) by $320,000.

• Opening Surplus position is greater than budgeted (i.e.favourable) $1,642,384.

Major Variances

The following table highlights the account groupings at the Town as well as the major variances. Immediately following this table is an explanation of some

of the variances.

6

Account Groupings Year-To-Date Revised Forecast Variance Executive

Actual Budget Value Summary

Particulars $ $ $ $ Notation

Expense 27,892,345 60,929,007 66,518,289 5,589,282

Employment 10,617,395 22,715,282 23,099,902 384,620 1

Office 413,703 830,846 786,532 (44,314)

Professional Services 772,265 3,234,265 3,367,256 132,991

Asset Operations 4,649,164 10,930,914 10,740,308 (190,606)

Programs 7,938,999 16,906,168 21,945,559 5,039,391 2

Interest Expense 107,213 205,000 205,000 0

Accounting Standards Expense 3,393,607 6,106,532 6,373,732 267,200 3

Revenue (57,310,923) (70,292,597) (68,344,146) 1,948,451

Rates (46,554,408) (46,391,068) (46,108,885) 282,183 4

Operating Funding (3,066,201) (3,457,000) (3,713,502) (256,502) 5

Capital Funding (1,234,811) (8,741,000) (6,988,962) 1,752,038 6

Fees and Charges (5,568,262) (9,943,930) (9,685,105) 258,826 7

Earnings Interest (545,659) (1,255,000) (1,112,030) 142,970

Revenue Other (341,583) (446,999) (678,063) (231,064)

Service Charges 0 0 0 0

Accounting Standards Revenue 0 (57,600) (57,600) 0

Capital Expense 9,634,227 26,334,385 22,661,939 (3,672,446)

Land 0 71,000 71,000 0

Buildings 393,896 2,606,400 2,551,353 (55,047)

Plant 384,058 1,265,000 1,024,498 (240,502)

Equipment 892 183,400 160,000 (23,400)

Information Technology 226,107 1,110,650 1,118,810 8,160

Roads 1,318,129 6,209,360 5,645,207 (564,153) 8

Drainage 15,976 497,700 347,700 (150,000)

Pathways 914,526 2,433,055 2,620,000 186,945

Parks 6,046,695 10,816,820 8,051,907 (2,764,913) 9

Other Infrastructure 333,948 1,141,000 1,071,464 (69,536)

Non-Operating Revenue (35,616) (6,764,000) (24,230,500) (17,466,500)

From Reserve 0 (6,476,000) (5,672,500) 803,500 10

Loan Proceeds 0 0 (18,150,000) (18,150,000) 11

Sale Proceeds (35,616) (288,000) (408,000) (120,000)

Non-Operating Expense 1,052,049 5,584,499 21,148,097 15,563,598

To Reserve 31,596 3,516,000 19,079,598 15,563,598 12

Principal 1,020,454 2,068,499 2,068,499 0

Adjustments (4,444,035) (15,791,294) (17,753,678) (1,962,384)

Non-Cash Items (4,444,035) (9,372,432) (9,692,432) (320,000) 13

Opening Position ((Surplus) / Deficit) 0 (6,418,862) (8,061,246) (1,642,384) 14

Total Account Groupings (23,211,953) 0 0 0

Executive Summary (continued)

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1. Employment expense (unfavourable)

2. Program expense (unfavourable)

3. Accounting Standards Expense (unfavourable)

4. Rates revenue (unfavourable)

5. Operating Funding (favourable)

6. Capital Funding (unfavourable)

7. Fees and charges revenue (unfavourable)

8. Capital expenditure - Roads (favourable)

9. Capital expenditure - Parks (favourable)

10. From Reserve Non Operating Revenue (unfavourable)

11. Loan proceeds (favourable)

12. Non-Cash Items (unfavourable)

13. Opening Position ((Surplus) / Deficit)

Conclusion and Recommendation

G Pattrick

Manager Corporate Services

Executive Summary (continued)

The increase in Employment expenditure predominantly relates to new staff positions created to deliver specific projects such as Social Impact,

Underground power, Asset Management system implementation, Senior Place Leader (Urban Forest) etc.

The increase in Program expenditure predominantly relates to the Underground Power project payments expected to be made to Western Power in the

current financial year.

Relates to an increase in estimated depreciation expenditure which is a non-monetary item.

The decrease in rates revenue relates to an adjustment to reflect rates received in advance as a liability

The increase in operating funding predominantly relates to grants received for the Lathlain Precinct Redevelopment project which was greater than

budgeted for.

The decrease in capital funding predominantly relates to grant funding not being approved or cancelled due to project withdrawal.

The decrease in revenue from fees and charges predominantly relates to lower than anticipated income from development applications due to poor

economic conditions and reduction in revenue due to the implementation of free Sunday parking and dynamic pricing on Albany highway.

The decrease in capital road expenditure predominantly relates to budget carry forward adjustments required to reflect actual budget available after the

finalisation of the 2018-2019 financial year.

The decrease in capital Parks expenditure predominantly relates to budget savings within the Lathlain Precinct Redevelopment Project and budget carry

forward adjustments required to reflect actual budget available after the finalisation of the 2018-2019 financial year.

Relates to new loan proceeds expected to be withdrawn for the Underground Power project.

The 2019-2020 Annual Budget Review has had input from all management levels at the Town, with the Senior Management Team acknowledging the

values as included in this Review.

The C Suite have been privy to the higher order values comprising this Review during February 2020. Comments and suggestions made during this time

have, where appropriate and possible, been incorporated into the Review outcomes. Accordingly, it is therefore recommended that the Review be

accepted and the associated budgetary changes be approved.

Relates to increase in estimated depreciation expenditure which is a non-monetary item.

The variance between the 1st July budgeted estimated surplus and 1st July Actual audited surplus is $1,642,384. The variance predominantly relates to

Federal Assistance Grants ($585,300) and Rates received in advance ($373,000) and savings made through out the year ($684,085).

The decrease in non operating revenue from Reserve is due to budget carry forward adjustments required to reflect actual budget available after the

finalisation of the 2018-2019 financial year. These funds were withdrawn during the last financial year for the John Macmillan Park redevelopment

project, and therefore was already accounted for within the 2018-2019 financial year.

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Statutory Obligations

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1)

2A) The review of an annual budget for a financial year must -

i)

ii) consider the local government's financial position as at the date of the review; and

iii) review the outcomes for the end of that financial year that are forecast in the budget.

2)

3)

4)

During each financial year Council is required to assess its financial performance.

This requirement is in accordance with -

• Council's Financial Management Practices; and

• Regulation 33A of the Local Government (Financial Management) Regulations 1996 (Review of Budget)

Regulation 33A states -

Between 1 January and 31 March in each financial year a local government is to carry out a review of its annual budget for that year

consider the local government's financial performance in the period beginning on 1 July and ending no earlier than 31

December in that financial year; and

Within 30 days after a review of the annual budget of a local government is carried out it is to be submitted to the Council.

A council is to consider a review submitted to it and is to determine (absolute majority required) whether or not to adopt the review, any

parts of the review or any recommendations made in the review.

Within 30 days after a council has made a determination, a copy of the review is to be provided to the department.

Statutory Obligations

10

Net Current Funding Position

11

1 July 1 July 31 December 30 June

As Budgeted As Audited Actual Forecast

Particulars $ $ $ $

Current Assets 15,394,692 22,156,316 42,696,024 14,383,000

Cash Unrestricted 12,360,188 18,115,254 27,762,029 11,150,000

Receivables and Accruals 3,025,034 4,008,731 14,901,664 3,200,000

Inventories 9,470 32,331 32,331 33,000

Assets Held for Sale 0 0 0 0

Current Liabilities (8,975,830) (14,095,069) (11,291,389) (14,383,000)

Payables (4,806,863) (9,865,595) (7,094,236) (9,938,000)

Provisions (4,168,967) (4,229,474) (4,197,153) (4,445,000)

Net Current Asset Position 6,418,862 8,061,247 31,404,635 0

Adjustments

Unspent Loans 0 0 0 0

Net Current Funding Position 6,418,862 8,061,247 31,404,635 0

Surplus / (Deficit) Variation between 1 July (As Budgeted) and 1 July (As Audited) 1,642,385

Variation Explanation between 1 July (As Budgeted) and 1 July (As Audited)

An explanation of the variance between 1 July (As Budgeted) and 1 July (As Audited) can be found in the Executive Summary.

The Net Current Funding Position (30 June - Forecast) represents the estimated closing balance for the financial year taking into regard all input by

individual Managers and Service Area Leaders within the organisation.

The Net Current Funding Position (1 July - As Audited) represents the actual audited closing position for the previous year after all required end-of-year and

audit adjustments have been completed.

The Net Current Funding position (31 December - Actual) represents the closing balance for the period under review after all required end-of-month

adjustments have been completed.

Net Current Funding Position

For the period 1 July 2019 to 31 December 2019

The Net Current Funding Position (1 July - As Budgeted) represents the estimate that was made, for budgeting purposes, for the closing balance for the

previous year prior to the actual audited closing position being known.

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Statement of Budget Review

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Revenue Year-To-Date Revised Forecast Variance Material

Actual Budget Value Variance

Particulars $ $ $ $ Movement

Chief Executive Office (1,693) (4,700) (4,000) 700

Chief Executive Office (1,693) (500) 0 500

Communications and Engagement 0 (1,000) (1,000) 0

Customer Relations 0 0 0 0

Human Resources 0 (3,000) (3,000) 0

Leadership and Governance 0 (200) 0 200

Community Planning (854,575) (1,283,371) (1,208,977) 74,394

Building Services (315,492) (345,500) (369,000) (23,500)

Community Development (92,076) (208,100) (203,532) 4,568

Community Planning Office (637) (1,000) (1,000) 0

Digital Hub (1,500) (2,075) (1,575) 500

Economic Development (2,108) (8,000) (8,000) 0

Environmental Health (228,997) (292,700) (260,700) 32,000 Unfavourable

General Compliance (7,986) (11,496) (11,496) 0

Healthy Community (24,800) (27,500) (39,470) (11,970)

Library Services (16,129) (27,500) (32,404) (4,904)

Place Management 0 0 0 0

Strategic Town Planning 0 0 0 0

Urban Planning (164,851) (359,500) (281,800) 77,700 Unfavourable

Finance (51,440,755) (56,771,743) (55,746,504) 1,025,239

Aqualife (1,154,768) (2,357,500) (2,435,731) (78,231) Favourable

Budgeting 0 (57,600) (57,600) 0

Corporate Funds (47,029,347) (48,384,568) (47,476,657) 907,911 Unfavourable

Finance Office (518) (1,300) (1,350) (50)

Financial Services (752,552) (834,000) (830,600) 3,400

Information Systems (29,136) (2,200) (2,500) (300)

Leisurelife (959,042) (1,971,000) (1,965,275) 5,725

Parking (1,443,039) (3,016,575) (2,849,715) 166,861 Unfavourable

Ranger Services (72,354) (147,000) (127,077) 19,923

Operations (5,013,899) (12,232,783) (11,384,665) 848,118

Asset Planning (375,519) (1,282,500) (1,421,843) (139,343) Favourable

Environment 0 0 0 0

Fleet Services (14,505) (11,500) (11,500) 0

Operations Office (2,576,638) (2,002,500) (2,728,650) (726,150) Favourable

Parks and Reserves (464,994) (4,648,500) (4,258,166) 390,334 Unfavourable

Project Management (16,572) (2,003) (17,912) (15,909)

Street Improvement (1,774) (98,000) (96,500) 1,500

Street Operations (783,864) (3,352,000) (2,065,494) 1,286,506 Unfavourable

Waste Services (780,034) (835,780) (784,600) 51,180 Unfavourable

Total Revenue (57,310,923) (70,292,597) (68,344,146) 1,948,451 Unfavourable

Statement of Budget Review


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Expense Year-To-Date Revised Forecast Variance Material



Chief Executive Office 2,088,961 4,954,238 5,050,477 96,239

Chief Executive Office 474,237 1,084,708 1,069,299 (15,409)

Communications and Engagement 337,983 807,354 810,954 3,600

Customer Relations 359,417 876,648 864,098 (12,550)

Human Resources 397,316 1,084,551 1,124,927 40,376 Unfavourable

Leadership and Governance 520,008 1,100,977 1,181,199 80,222 Unfavourable

Community Planning 4,008,259 8,825,060 9,404,594 579,534

Building Services 240,709 556,212 526,022 (30,190) Favourable

Community Development 1,052,648 2,195,471 2,191,952 (3,519)

Community Planning Office 488,471 984,916 1,080,418 95,502 Unfavourable

Digital Hub 61,385 152,550 151,750 (800)

Economic Development 81,542 262,198 277,524 15,326

Environmental Health 262,933 719,522 699,150 (20,372)

General Compliance 68,623 248,373 170,489 (77,884) Favourable

Healthy Community 137,745 248,965 272,935 23,970

Library Services 658,100 1,314,211 1,329,537 15,326

Place Management 141,963 420,555 878,075 457,520 Unfavourable

Strategic Town Planning 217,956 640,662 607,247 (33,415) Favourable

Urban Planning 596,185 1,081,425 1,219,495 138,070 Unfavourable

Finance 10,640,679 23,030,231 23,297,019 266,788

Aqualife 1,300,379 2,479,912 2,563,770 83,858 Unfavourable

Budgeting 4,688,773 9,103,032 9,423,032 320,000 Unfavourable

Corporate Funds 127,203 638,252 634,092 (4,160)

Finance Office 379,546 854,643 854,653 10

Financial Services 562,607 1,529,014 1,554,089 25,075 Unfavourable

Information Systems 1,293,491 3,014,881 3,105,801 90,920 Unfavourable

Leisurelife 1,024,148 2,186,327 2,177,352 (8,975)

Parking 940,218 2,404,080 2,212,173 (191,907) Favourable

Ranger Services 324,314 820,090 772,057 (48,033) Favourable

Operations 11,154,446 24,119,478 28,766,199 4,646,721

Asset Planning 1,732,117 4,051,151 9,186,977 5,135,826 Unfavourable

Environment 107,571 187,306 226,181 38,875 Unfavourable

Fleet Services 6,179 0 0 0

Operations Office 2,906,308 2,852,764 3,552,962 700,198 Unfavourable

Parks and Reserves 2,011,209 5,220,208 4,616,630 (603,578) Favourable

Project Management 601,650 1,661,409 1,814,689 153,280 Unfavourable

Street Improvement 454,607 1,095,470 1,175,890 80,420 Unfavourable

Street Operations 1,039,166 2,656,030 2,666,511 10,481

Waste Services 2,295,638 6,395,140 5,526,359 (868,781) Favourable

Total Expense 27,892,345 60,929,007 66,518,289 5,589,282 Unfavourable

Statement of Budget Review (continued)


15

Capital Year-To-Date Revised Forecast Variance Material



Community Planning 0 188,000 138,000 (50,000)

Community Development 0 188,000 138,000 (50,000) Favourable

Finance 226,107 1,140,650 1,118,810 (21,840)

Aqualife 0 0 0 0

Information Systems 226,107 1,110,650 1,118,810 8,160

Parking 0 30,000 0 (30,000) Favourable

Operations 9,408,120 25,005,735 21,405,129 (3,600,606)

Asset Planning 394,788 2,789,800 2,711,353 (78,447) Favourable

Fleet Services 384,058 1,265,000 1,024,498 (240,502) Favourable

Parks and Reserves 6,046,695 10,816,820 8,051,907 (2,764,913) Favourable

Project Management 0 71,000 71,000 0

Street Operations 2,582,580 10,063,115 9,546,371 (516,744) Favourable

Waste Services 0 0 0 0

Total Capital 9,634,227 26,334,385 22,661,939 (3,672,446) Favourable



16

Non-Operating Revenue Year-To-Date Revised Forecast Variance Material



Finance 0 (6,476,000) (23,822,500) (17,346,500)

Corporate Funds 0 (6,476,000) (23,822,500) (17,346,500) Favourable

Operations (2,556) (288,000) (408,000) (120,000)

Fleet Services (2,556) (288,000) (408,000) (120,000) Favourable

Total Non-Operating Revenue (2,556) (6,764,000) (24,230,500) (17,466,500) Favourable

Non-Operating Expense Year-To-Date Revised Forecast Variance Material



Finance 1,052,049 5,584,499 21,148,097 15,563,598

Corporate Funds 1,052,049 5,584,499 21,148,097 15,563,598 Unfavourable

Total Non-Operating Expense 1,052,049 5,584,499 21,148,097 15,563,598 Unfavourable

Non-Cash Adjustments Year-To-Date Revised Forecast Variance Material



Non-Cash Items (4,444,035) (9,372,432) (9,692,432) (320,000)

Profit and Loss 0 12,068 12,068 0

Depreciation (4,444,035) (9,384,500) (9,704,500) (320,000)

Total Non-Cash Adjustments (4,444,035) (9,372,432) (9,692,432) (320,000) Favourable

(Surplus) / Deficit Position Year-To-Date Revised Forecast Variance Material



(Surplus) / Deficit Position 0 (6,418,862) (8,061,246) (1,642,384)

Opening (Surplus) / Deficit 0 (6,418,862) (8,061,246) (1,642,384) Favourable

Total (Surplus) / Deficit Position 0 (6,418,862) (8,061,246) (1,642,384) Favourable

Closing (Surplus) / Deficit Position (23,178,893) 0 0 0



17


18

Service Area Variance Reporting

19

Service Area Variance Reporting

For the purposes of reporting the budgeted material variance movements in the Statement of Budget Review (which has been prepared by each individual

Service Area), the following indicators have been applied -

Revenues (Operating and Non-Operating)

Service Area material variances will be identified where, for the period being reviewed, the year-end forecast varies to the current revised budget estimate

by an amount (+) or (-) $25,000 and, in those instances, an explanatory comment will be provided.

Expenses (Operating, Capital and Non-Operating)

Service Area material variances will be identified where, for the period being reviewed, the year-end forecast varies to the current revised budget estimate

by an amount (+) or (-) $25,000 and, in those instances, an explanatory comment will be provided.

20

Service Statement

Year-To-Date Revised Forecast Variance Material


Particulars Note $ $ $ $ Movement

Expense 474,237 1,084,708 1,069,299 (15,409)

Employment 416,665 895,638 879,638

Office 5,146 14,040 14,040

Professional Services 9,209 15,730 16,320

Asset Operations 1,129 9,830 9,830

Programs 42,088 149,470 149,471

Revenue (1,693) (500) 0 500

Revenue Other (1,693) (500) 0

Total 472,544 1,084,208 1,069,299 (14,909)

Financial Position and Material Variance Movement Explanation(s)

The Chief Executive Office service area budget is on track. No material variances are expected at end of financial year

Service Area Variance Reporting (continued)

Chief Executive Office - Chief Executive Office

The Chief Executive Office leads and supports the transformation of the organisation into a customer-focused, culturally constructive, legislatively

compliant, sector-leading entity, with a primary focus on the Service Areas within the Chief Executive Office functional area.

21

Service Statement




Expense 337,983 807,354 810,954 3,600

Employment 300,082 632,894 636,494

Office 6,554 26,490 26,490

Professional Services 0 31,460 31,460


Programs 29,542 106,680 106,680

Revenue 0 (1,000) (1,000) 0

Revenue Other 0 (1,000) (1,000)

Total 337,983 806,354 809,954 3,600



Chief Executive Office - Communications and Engagement

Communications and Engagement manages the brand and reputation of the Town. This is achieved through developing clear and accessible messaging,

consulting with the community, delivering key messages through various channels and working to reach the appropriate audiences through strategically

executed marketing, engagement and communication planning.

The Communications and Engagement service area budget is on track. No material variances are expected at end of financial year.

22

Service Statement




Expense 359,417 876,648 864,098 (12,550)

Employment 326,225 771,878 759,604

Office 19,167 47,140 46,864


Programs 4,724 7,980 7,980

Total 359,417 876,648 864,098 (12,550)



Chief Executive Office - Customer Relations

Customer Relations manages the Customer Service Contact Centre, which is the first point of contact for the organisation, and monitors performance

against the Town's Customer Service Charter.

The Customer Relations service area budget is on track. No material variances are expected at end of financial year

23

Service Statement




Expense 1 520,008 1,100,977 1,181,199 80,222 Unfavourable

Employment 250,642 497,817 541,790

Office 12,948 27,830 23,000


Asset Operations 2,032 0 0

Programs 251,936 506,020 581,072

Revenue 0 (200) 0 200

Revenue Other 0 (200) 0

Total 520,008 1,100,777 1,181,199 80,422 Unfavourable



Chief Executive Office - Leadership and Governance

The Leadership and Governance Service Area is committed to responsibly managing the Town on behalf of the residents and ratepayers of the District

through collaboration, knowledge-sharing and good governance.

1. Operating expenditure within Leadership and Governance area has an unfavourable variance of $80,222. The unfavourable variance predominantly

relates to costs associated with holding an extraordinary election.

24

Service Statement





Employment 288,446 631,721 633,302

Office 6,170 15,440 15,440


Asset Operations 0 0 0

Programs 101,432 412,320 451,115

Revenue 0 (3,000) (3,000) 0

Revenue Other 0 (3,000) (3,000)



Chief Executive Office - Human Resources

Human Resources is responsible for the development and implementation of occupational health and safety compliance, staff development, employee

relations, recruitment and payroll services of the Town.

1. Operating expenditure within Human Resources has an unfavourable variance of $40,376. The unfavourable variance is predominantly due to

increased employee assistance and medical costs.


25

Service Statement




Expense 1 240,709 556,212 526,022 (30,190) Favourable

Employment 224,012 507,172 464,012

Office 6,939 8,700 9,500



Programs 101 2,000 2,000

Revenue (315,492) (345,500) (369,000) (23,500)

Fees and Charges (311,538) (338,000) (362,000)

Revenue Other (3,954) (7,500) (7,000)

Total (74,783) 210,712 157,022 (53,690) Favourable


Building Services provide services to ensure buildings are safe, liveable, accessible and sustainable, and meet statutory requirements.

1. Operating expenditure within Building services area has a favourable budget forecast variance of $30,190. The favourable variance relates to savings in

employment costs within the area.


Community Planning - Building Services

26

Service Statement




Expense 1,052,648 2,195,471 2,191,952 (3,519)

Employment 458,125 1,087,856 1,060,519

Office 17,001 24,775 25,575



Programs 560,096 1,012,440 1,015,458

Revenue (92,076) (208,100) (203,532) 4,568

Operating Funding (4,800) (22,500) (14,500)

Fees and Charges (82,097) (171,600) (173,532)

Revenue Other (5,179) (14,000) (15,500)

Capital Expense 1 0 188,000 138,000 (50,000) Favourable

Other Infrastructure 0 188,000 138,000

Total 960,572 2,175,371 2,126,420 (48,951) Favourable


The Community Development team's vision is an empowered Victoria Park, which will be achieved through the mission of community capacity building and

applying the principles of Asset Based Community Development.


Community Planning - Community Development

The Community Development service area operating revenue and expenditure budget is on track.

1. Capital expenditure shows a favourable budget variance of $50,000. The variance is due to change in scope of the art work design for the Victoria Park

Drive and Glenn Place Roundabout. Funds relating to this project has been transferred to the Arts reserve to access when scope is finalised.

27

Service Statement




Expense 1 488,471 984,916 1,080,418 95,502 Unfavourable

Employment 463,949 906,066 1,001,408

Office 6,224 11,470 11,470



Programs 5,503 33,950 33,950

Revenue (637) (1,000) (1,000) 0

Revenue Other (637) (1,000) (1,000)

Total 487,834 983,916 1,079,418 95,502 Unfavourable


The Community Planning Office leads and supports the transformation of the organisation into a customer-focused, culturally constructive, legislatively

compliant, sector-leading entity, with a primary focus on the Service Areas within the Community Planning functional area which includes the Place

Planning, Development Services and Community Development service areas.

1. Operating expenditure within Community Planning Office area has an unfavourable budget forecast variance of $95,502. The unfavourable variance is

due to increased employment cost within the area relating to the creation of a Social impact project officer role.


Community Planning - Community Planning Office

28

Service Statement




Expense 61,385 152,550 151,750 (800)

Employment 58,836 126,340 127,840

Office 2,317 11,400 10,100

Asset Operations 0 4,920 4,920

Programs 232 9,890 8,890

Revenue (1,500) (2,075) (1,575) 500

Minor Events and Initiatives (1,500) 0 (1,500)

Fees and Charges 0 (2,075) (75)

Revenue Other 0 0 0

Total 59,885 150,475 150,175 (300)


The Digital Hub service area budget is on track. No material variances are expected at end of financial year


Community Planning - Digital Hub

The Digital Hub provides free digital literacy and online training for the local community, not-for-profit organisations and local business operators.

29

Service Statement




Expense 81,542 262,198 277,524 15,326

Employment 51,969 119,868 119,868

Office 1,948 7,960 7,960


Programs 12,800 75,270 70,596

Total 81,542 262,198 277,524 15,326


The Economic Development service area budget is on track. No material variances are expected at end of financial year


Community Planning - Economic Development

Economic Development seeks to increase the economic growth of the district through fostering business attraction and retention, tourism, marketing,

community initiatives and creating robust relationships.

30

Service Statement




Expense 262,933 719,522 699,150 (20,372)

Employment 226,201 583,652 562,180

Office 8,158 13,910 15,660



Programs 13,260 38,870 33,630

Revenue 1 (228,997) (292,700) (260,700) 32,000 Unfavourable

Operating Funding 0 (1,000) (1,000)

Fees and Charges (221,655) (271,500) (249,500)

Revenue Other (7,342) (20,200) (10,200)

Total 33,936 426,822 438,450 11,628



Community Planning - Environmental Health

Environmental Health seeks to protect and promote healthy natural and built environments in our community.

1. Operating revenue within Environmental Health area has an unfavourable budget forecast variance of $32,000. The unfavourable variance relates to a

lower than anticipated income from food business registrations and prosecution collection fees.

31

Service Statement





Employment 55,653 197,112 124,986

Office 2,384 7,007 6,000



Programs 0 0 0

Revenue (7,986) (11,496) (11,496) 0

Revenue Other (7,986) (11,496) (11,496)

Total 60,637 236,877 158,993 (77,884) Favourable



Community Planning - General Compliance

The General Compliance Area liaise with and direct property owners and developers to ensure built-form building and planning requirements are adhered

to at all times.

1. Operating expenditure within General Compliance area has a favourable budget forecast variance of $77,884. The favourable variance is due to the

movement of employment cost relating to Infrastructure compliance Officer role from General Compliance area to Street Improvement service area.

32

Service Statement




Expense 137,745 248,965 272,935 23,970

Employment 113,741 202,695 224,695

Office 1,728 3,500 3,470

Programs 22,276 42,770 44,770

Revenue (21,743) (27,500) (31,413) (3,913)

Fees and Charges (21,743) (27,500) (31,413)

Total 116,002 221,465 241,522 20,057



Community Planning - Healthy Community

The Healthy Community team connect people to services, resources, information, facilities, and experiences that enhance their physical and social health

and wellbeing.

The Healthy Community service area budget is on track. No material variances are expected at end of financial year

33

Service Statement




Expense 658,100 1,314,211 1,329,537 15,326

Employment 560,469 1,054,761 1,082,357

Office 27,260 50,440 46,320


Programs 63,606 184,430 176,280

Revenue (16,129) (27,500) (32,404) (4,904)

Operating Funding (880) (6,000) (6,380)

Fees and Charges (14,575) (21,000) (25,506)

Revenue Other (674) (500) (518)

Total 641,971 1,286,711 1,297,133 10,422


Community Planning - Library Services

Library Services plays a pivotal role in providing our community with access to resources, knowledge and technology in a safe, nurturing environment.

The Library service area budget is on track. No material variances are expected at end of financial year


34

Service Statement




Expense 1 141,963 420,555 878,075 457,520 Unfavourable

Employment 118,729 218,805 307,555

Office 9,164 17,300 17,300



Programs 0 0 305,370

Total 141,963 420,555 878,075 457,520 Unfavourable


The Place Management Service Area implements programs, that are suitable for the particular targeted section of the community, to improve places within

the District or, where the community is satisfied with the standard of operation, to maintain the already attained standard.

1. Operating expenditure within Place Management area has an unfavourable budget forecast variance of $457,520. The unfavourable variance relates to

the movement of the Urban Forest Strategy budget from Parks and Reserves area to Place Management.


Community Planning - Place Management

35

Service Statement





Employment 152,636 360,922 360,922

Office 5,053 12,450 12,450



Revenue 0 0 0 0

Revenue Other 0 0 0



1. Operating expenditure within Strategic Town Planning area has a favourable budget forecast variance of $33,415. The favourable variance relates to

savings within the area which has been moved to Place Management to fund Higgins Park Master Plan and new funding request for Burswood Peninsula

wayfinding.


Community Planning - Strategic Town Planning

Strategic Town Planning develops strategies for the future growth of the Town, with the aims of creating a vibrant community and improving the quality of

life for residents.

36

Service Statement





Employment 438,689 822,035 879,745

Office 19,700 29,280 25,870



Programs 29,739 105,730 99,000


Fees and Charges (163,475) (357,000) (279,300)

Revenue Other (1,376) (2,500) (2,500)




Community Planning - Urban Planning

Urban Planning assesses applications for development approval and subdivision, provides advice to the community and ensures land is appropriately used

and developed.

1. Operating expenditure within Urban Planning area has an unfavourable budget forecast variance of $138,070. The unfavourable variance relates to

additional employments costs, and costs incurred in engaging legal and other representation in defending an appeal at the State Administrative Tribunal.

2. Operating Revenue within Urban Planning area has an unfavourable budget forecast variance of $77,700. The unfavourable variance relates to a lower

than anticipated income from development applications due to poor economic conditions.

37

Service Statement




Expense 1 1,300,379 2,479,912 2,563,770 83,858 Unfavourable

Employment 1,098,305 2,127,722 2,181,116

Office 53,236 107,880 88,223


Programs 96,233 155,820 186,601

Revenue 2 (1,154,768) (2,357,500) (2,435,731) (78,231) Favourable

Fees and Charges (1,152,231) (2,356,500) (2,432,500)

Revenue Other (2,537) (1,000) (3,231)

Capital Expense 0 0 0 0

Furniture and Equipment 0 0 0

Total 145,611 122,412 128,039 5,627



Finance - Aqualife

The Aqualife Centre aims to improve community health and wellbeing; and to provide a safe and welcoming environment for the community to meet and

socialise, primarily through aquatic recreation.

2. Operating Revenue within Aqualife area has a favourable budget forecast variance of $78,231. The favourable variance relates to increased revenue

from the new “All access” membership provided by Aqualife.

1. Operating expenditure within Aqualife area has an unfavourable budget forecast variance of $83,858. The unfavourable variance relates to increased

employment and banking costs due to increased memberships.

38

Service Statement





Accounting Standards Expense 4,688,773 9,103,032 9,423,032

Revenue 0 (57,600) (57,600) 0

Accounting Standards Revenue 0 (57,600) (57,600)

Total 4,688,773 9,045,432 9,365,432 320,000 Unfavourable



Finance - Budgeting

The Budgeting Area includes the administration of non-cash expenditure and revenue associated with local government accounting requirements, including

profit and loss and depreciation.

1. Operating expenditure within Budgeting area has an unfavourable budget forecast variance of $320,000. The unfavourable variance relates to an

increase in estimated depreciation costs which is a non-monetary item.

39

Service Statement




Expense 127,203 638,252 634,092 (4,160)

Programs 19,990 433,252 429,092

Interest Expense 107,213 205,000 205,000

Revenue 1 (47,029,347) (48,384,568) (47,476,657) 907,911 Unfavourable

Rates (46,554,408) (46,391,068) (46,108,885)

Operating Funding (267,498) (1,100,000) (560,472)

Earnings Interest (134,915) (801,500) (651,500)

Revenue Other (72,527) (92,000) (155,800)

Non-Operating Revenue 2 0 (6,476,000) (23,822,500) (17,346,500) Favourable

From Reserve 0 (6,476,000) (5,672,500)

Loan Proceeds 0 0 (18,150,000)

Sale Proceeds 0 0 0

Non-Operating Expense 3 1,052,049 5,584,499 21,148,097 15,563,598 Unfavourable

To Reserve 31,596 3,516,000 19,079,598

Principal 1,020,454 2,068,499 2,068,499

Total (45,850,095) (48,637,817) (49,516,968) (879,151) Favourable



Finance - Corporate Funds

The Corporate Funds are includes the management of loans, reserve fund transfers, restricted and trust funds, rate revenue and corporate grants funding.

1. Operating Revenue within Corporate Fund area has an unfavourable budget forecast variance of $907,911. The unfavourable variance relates to the

adjustment of rates revenue and Federal assistance grant received in advance.

2. Non-Operating Revenue within Corporate Fund area has a favourable budget forecast variance of $17,346,500. The favourable variance relates to loan

proceeds for the new Underground power project.

3. Non-Operating Expense within Corporate Fund area has an unfavourable budget forecast variance of $15,563,598. The unfavourable variance

predominantly relates to transfer of unspent Underground power loan proceeds into the Underground Power Reserve.

40

Service Statement




Expense 1 379,546 854,643 854,653 10

Employment 357,463 786,681 786,483

Office 5,979 17,270 13,700



Programs 5,324 27,530 35,020

Revenue (518) (1,300) (1,350) (50)

Revenue Other (518) (1,300) (1,350)

Total 379,028 853,343 853,303 (40)



Finance - Finance Office

The Finance Office leads and supports the transformation of the organisation into a customer-focused, culturally constructive, legislatively compliant, sector-

leading entity, with a primary focus on the Service Areas within the Finance functional area.

The Finance Office service area budget is on track. No material variances are expected at end of financial year

41

Service Statement





Employment 364,410 776,318 786,829

Office 47,669 74,466 69,760



Programs 132,673 614,300 545,000

Revenue (752,552) (834,000) (830,600) 3,400


Fees and Charges (309,143) (348,000) (339,900)


Revenue Other (702) (1,000) (1,370)

Total (189,945) 695,014 723,489 28,475 Unfavourable



Finance - Financial Services

The key role of Financial Services is to manage and control the Town's finances in a sound and prudent manner.

1. Operating expenditure within Financial Services area has an unfavourable budget forecast variance of $25,075. The unfavourable variance is due to

increased cost on conducting a full review and formal procurement process for insurance services for the Town.

42

Service Statement





Employment 474,303 1,069,571 1,074,271

Office 10,052 17,910 18,260



Programs 767,156 1,656,300 1,738,300

Revenue (29,136) (2,200) (2,500) (300)

Operating Funding 0 0 0

Fees and Charges 80 (700) (1,000)

Revenue Other (29,216) (1,500) (1,500)

Capital Expense 226,107 1,110,650 1,118,810 8,160

Information Technology 226,107 1,110,650 1,118,810



Finance - Information Systems

Information Systems assists the Town in operating efficiently with the smooth running of essential business computer programs and systems.


1. Operating expenditure within Information Systems area has an unfavourable budget forecast variance of $90,920. The unfavourable variance relates to

increased software licencing expenditure and funding required for computer equipment which was leased previously.

43

Service Statement




Expense 1,024,148 2,186,327 2,177,352 (8,975)

Employment 717,926 1,554,997 1,545,350

Office 19,925 38,110 28,772


Programs 282,870 577,970 588,900

Revenue (959,042) (1,971,000) (1,965,275) 5,725

Fees and Charges (958,570) (1,970,500) (1,964,475)

Revenue Other (472) (500) (800)

Total 65,106 215,327 212,077 (3,250)


Finance - Leisurelife

The Leisurelife Centre aims to improve community health and wellbeing, and to provide a safe and welcoming environment for the community to meet and

socialise, primarily through active recreation.

The Leisurelife service area budget is on track. No material variances are expected at end of financial year.


44

Service Statement




Expense 1 940,218 2,404,080 2,212,173 (191,907) Favourable

Employment 559,254 1,331,320 1,222,976

Office 32,521 56,020 68,260



Programs 159,146 455,310 436,058

Revenue 2 (1,443,039) (3,016,575) (2,849,715) 166,861 Unfavourable


Fees and Charges (1,260,250) (2,662,075) (2,495,215)

Revenue Other (127,542) (155,500) (254,500)

Capital Expense 3 0 30,000 0 (30,000) Favourable


Other Infrastructure 0 30,000 0

Total (502,821) (582,495) (637,542) (55,047) Favourable


The Parking Management section guides future parking initiatives within the Town, ensuring equitable access for everyone, whilst also monitoring existing

parking areas and ensuring a safer community.

1. Operating expenditure within Parking Management area has a favourable budget forecast variance of $191,907. The favourable variance is

predominantly due to savings in consultancy, employment related cost and lower than anticipated infringement write off costs.


Finance - Parking Management

2. Operating revenue within Parking Management area has an unfavourable budget forecast variance of $166,861. The unfavourable variance relates to a

reduction in revenue due to the implementation of free Sunday parking and dynamic pricing on Albany highway.

3. Capital expenditure within Parking Management area has a favourable budget forecast variance of $30,000. The favourable variance is due to capital

expenditure relating to Parking signage being no longer required.

45

Service Statement





Employment 270,210 622,480 579,387

Office 20,042 41,890 37,320



Programs 19,382 103,610 103,240

Revenue (72,354) (147,000) (127,077) 19,923


Fees and Charges (66,653) (126,000) (106,000)

Revenue Other (4,674) (16,500) (16,500)



Ranger Services offer a 24 hours-a-day / 7 days-a-week service to help ensure community safety in the areas of Dog and Cat management and other Local

Law enforcement.

1. Operating expenditure within Ranger Services area has an unfavourable budget forecast variance of $48,033. The favourable variance is predominantly

due to savings in employment costs.


Finance - Rangers

46

Service Statement




Expense 1 1,732,117 4,051,151 9,186,977 5,135,826 Unfavourable

Employment 283,135 667,631 801,774

Office 11,683 22,890 18,750


Asset Operations 1,348,237 2,680,180 2,848,423

Programs 1,834 398,840 5,348,060

Revenue 2 (375,519) (1,282,500) (1,421,843) (139,343) Favourable

Operating Funding 0 0 (57,000)

Capital Funding (234,405) (986,000) (986,000)

Fees and Charges (108,919) (240,200) (238,200)


Revenue Other (29,793) (47,300) (131,643)

Service Charges 0 0 0

Capital Expense 3 394,788 2,789,800 2,711,353 (78,447) Favourable

Buildings 393,896 2,606,400 2,551,353

Furniture and Equipment 892 183,400 160,000

Total 1,751,387 5,558,451 10,476,487 4,918,036 Unfavourable


Asset Planning provides services to manage and maintain Council facilities and their related assets.


Operations - Asset Planning

1. Operating expenditure within Asset Planning area has an unfavourable budget forecast variance of $5,135,826. The unfavourable variance

predominantly relates to scheduled underground Power progress claims to Western Power.

3. Capital expenditure within Asset Management area has a favourable budget forecast variance of $78,447. The favourable variance predominantly

relates to savings within the Lathlain Precinct Redevelopment Project and budget carry forward adjustments.

2. Operating revenue within Asset Planning area has a favourable budget forecast variance of $139,343. The favourable variance relates to additional

revenue expected from Aqualife solar panel subsidy and expenditure recoupment from Western Power for the underground power project.

47

Service Statement




Expense 1 107,571 187,306 226,181 38,875 Unfavourable

Employment 56,550 112,996 122,496

Office 1,712 3,500 3,000

Professional Services 0 1,000 725

Programs 49,309 69,810 99,960



Operations - Environment

The Environment Area is committed to sustainable natural resource use, preserving and enhancing natural areas and recognises not only the ecological

benefits of protecting natural assets, but also the social and recreational benefits as well.

1. Operating expenditure within Environment area has an unfavourable budget forecast variance of $38,875. The variance predominantly relates to the

development of the climate emergency plan which was approved at the quarterly budget review process.


48

Service Statement




Expense 6,179 0 0 0

Employment 73,638 237,550 236,550

Office 4,963 11,500 11,500



Programs 367,419 854,988 859,488

Accounting Standards Expense (448,425) (1,168,538) (1,172,038)

Revenue (14,505) (11,500) (11,500) 0

Revenue Other (14,505) (11,500) (11,500)

Capital Expense 1 384,058 1,265,000 1,024,498 (240,502) Favourable

Plant and Machinery 384,058 1,265,000 1,024,498

Non-Operating Revenue 2 (35,616) (288,000) (408,000) (120,000) Favourable

Sale Proceeds (35,616) (288,000) (408,000)



Fleet Services oversees the various items of light fleet, heavy fleet and plant and equipment.

1. Capital expenditure within Fleet Management area has a favourable budget forecast variance of $240,502. The favourable variance relates to savings

within the area and budget carry forward adjustments.


Operations - Fleet Services

2. Non-Operating revenue within Fleet Management area has a favourable budget forecast variance of $120,000. The favourable variance relates to sale

of plant and machinery that are either no longer required or the sale was delayed due to vehicles requiring repairs prior to sale.

49

Service Statement





Employment 318,434 729,394 723,442

Office 6,314 11,900 11,900



Programs 2,578,741 2,053,950 2,760,100

Revenue 2 (2,576,638) (2,002,500) (2,728,650) (726,150) Favourable

Operating Funding (2,576,140) (2,000,000) (2,726,150)

Revenue Other (498) (2,500) (2,500)



2. Operating Revenue within Operations Office area has a favourable budget forecast variance of $726,150. The favourable variation relates to the

Lathlain Redevelopment project grant funding, which was greater than budgeted for. There is a similar increase in associated operating expenditure for

the same project.

1. Operating expenditure within Operations Office area has an unfavourable budget forecast variance of $700,198. The unfavourable variance relates to

increased operating cost relating to the Lathlain Precinct Redevelopment project. There is an increase in associated grant funding revenue for the same

project.


Operations - Operations Office

The Operations Office leads and supports the transformation of the organisation into a customer-focused, culturally constructive, legislatively compliant,

sector-leading entity, with a primary focus on the Service Areas within the Operations functional area.

50

Service Statement




Expense 1 2,011,209 5,220,208 4,616,630 (603,578) Favourable

Employment 378,328 756,000 765,900

Office 10,459 21,400 21,400



Programs 12,345 324,348 99,350

Accounting Standards Expense (440,510) (910,400) (941,800)

Revenue 2 (464,994) (4,648,500) (4,258,166) 390,334 Unfavourable

Capital Funding (422,077) (4,594,000) (4,200,177)

Fees and Charges (40,981) (45,500) (48,989)

Revenue Other (1,936) (9,000) (9,000)

Capital Expense 3 6,046,695 10,816,820 8,051,907 (2,764,913) Favourable

Parks 6,046,695 10,816,820 8,051,907

Total 7,592,910 11,388,528 8,410,371 (2,978,157) Favourable


2. Operating revenue within Parks and Reserves area has an unfavourable budget forecast variance of $390,334. The unfavourable variance relates to

lower than anticipated grants and contributions expected within the area.

3. Capital expenditure within Parks and Reserves area has a favourable budget forecast variance of $2,764,913. The favourable variance relates to savings

within the Lathlain Precinct Redevelopment Project ($1 million) and budget carry forward adjustments. The variance also relates to the transfer of budget

from capital expenditure to Reserves for projects that have been postponed (GO Edwards Park Redevelopment).

1. Operating expenditure within Parks and Reserves area has a favourable budget forecast variance of $603,578. The variance predominantly relates to

the move of the Urban forest strategy budget from Parks and Reserves service area to Place Management area.


Operations - Parks and Reserves

The Parks and Reserves Section delivers high quality horticultural works to parks, reserves and streetscapes.

51

Service Statement





Employment 475,739 886,188 979,411

Office 5,078 14,948 15,048


Assets 1,652 9,830 9,830

Programs 0 0 0

Revenue (16,572) (2,003) (17,912) (15,909)

Operating Funding 0 0 0

Fees and Charges 0 0 0

Revenue Other (16,572) (2,003) (17,912)

Capital Expense 0 71,000 71,000 0

Land 0 71,000 71,000




Operations - Project Management

Project Management assists in improving the standards of project management and project delivery, and delivers nominated strategic projects on behalf of

the Town.

1. Operating expenditure within Project Management area has an unfavourable budget forecast variance of $153,280. The unfavourable variance relates

to increased employment costs within the area relating to the Underground Power Project

52

Service Statement





Employment 366,689 739,640 821,940

Office 7,985 19,530 18,530



Programs 1,560 14,750 12,000

Revenue (1,774) (98,000) (96,500) 1,500

Operating Funding 0 0 (50,000)

Fees and Charges (1,257) (90,000) (45,000)

Revenue Other (518) (8,000) (1,500)

Total 452,833 997,470 1,079,390 81,920 Unfavourable


1. Operating expenditure within Street Improvement area has an unfavourable budget forecast variance of $80,420. The unfavourable variance is due to

the movement of employment cost relating to Infrastructure compliance Officer role from General Compliance area to Street Improvement service area.


Operations - Street Improvement

Street Improvement provides engineering advice, design, planning, and road safety initiatives.

53

Service Statement




Expense 1,039,166 2,656,030 2,666,511 10,481

Employment 214,749 529,562 485,062

Office 9,125 14,500 17,600



Programs 13,048 75,730 84,269


Revenue 1 (783,864) (3,352,000) (2,065,494) 1,286,506 Unfavourable


Capital Funding (578,329) (3,161,000) (1,802,785)

Fees and Charges (79,797) (108,000) (105,500)

Revenue Other (5,315) (2,000) (5,786)

Capital Expense 2 2,582,580 10,063,115 9,546,371 (516,744) Favourable

Roads 1,318,129 6,209,360 5,645,207

Drainage 15,976 497,700 347,700

Pathways 914,526 2,433,055 2,620,000

Other Infrastructure 333,948 923,000 933,464



1. Operating revenue within Street Operations area has an unfavourable budget forecast variance of $1,286,506. The unfavourable variance relates to

grants associated with projects that have either been withdrawn or not approved for funding. Adjustments have also been made for budgets carried

forward, but funds received last financial year.

2. Capital expenditure within Street Operations area has a favourable budget forecast variance of $516,744. The favourable variance relates to budget

carry forward adjustments and budget funds transferred to reserves for projects that have been postponed.


Operations - Street Operations

Street Operations ensure the maintenance and renewal of roads, pathways, drainage and associated assets.

54

Service Statement




Expense 1 2,295,638 6,395,140 5,526,359 (868,781) Favourable

Employment 103,192 170,000 220,000

Office 9,096 28,000 27,000



Programs 2,294,636 6,401,840 5,533,859



Fees and Charges (774,987) (799,780) (779,000)


Revenue Other (2,361) (33,500) (2,900)

Capital Expense 0 0 0 0


Total 1,515,604 5,559,360 4,741,759 (817,601) Favourable



Operations - Waste Services

Waste Management implements waste collection, minimisation and disposal in a sustainable manner.

1. Operatingexpenditure within Waste Services area has a favourable budget forecast variance of $868,781. The favourable variance relates to reduced

waste collection and disposal costs and reduced street and pathway cleaning & sweeping costs

2. Operating revenue within Waste Services area has an unfavourable budget forecast variance of $51,180. The unfavourable variance relates to revenue

from waste collection being lower than anticipated.

55

Capital Expense Items

56

As per new work orders raisedForecast value

$

Wishing Well Restoration Works 30,000 Renewal works for Wishing wellAdministration Centre – facilities renewal 40,000 Renewal works required at Administration centreWashbay Pressure Washer 14,000

Raphel Park - Synthetic Cricket Wickets 17,000 George Street Reserve - Interpretive and QR Code Signage 10,000

Solar Way - Mercury Street to Mercury Street - Road Rehab 335,000

Upgrade - McCartney Crescent 2,400

Star Street - Mid Block to Archer - Renew Seal (MRRG) 3,415

Reseal - Carnarvon (Dane to Somerset) 180,000

Reseal - Planet St (Mercury to Cohn) 160,000

Reseal - Streatley (Gallipoli to Castle 190,000

Reseal - Sussex St (Devenish to Berwick 200,000

Albany Highway - Kent - Miller Roundabout - Renew Seal (MRRG) 2,754

Albany Highway - Service Lane to Shepperton - Renew Seal (MRRG) 5,340

Total 1,189,909

Redesigned required for the reticulation around McCartney

Crescent. Works are completed but expenditure was made. Linemarking expenditure from Main Roads WA which was

invoiced after FY 2018/2019 Renewal of the road pavement, drainage and kerbing works

Renewal of the road pavement, drainage and kerbing works




Resurfacing of the cricket wicketsSigns with QR codes interpreting the wildlife including birds,

reptiles wild flower of kensington bushland

Summary of New Capital Expense Items

Linemarking expenditure from Main Roads WA which was

invoiced after FY 2018/2019Linemarking expenditure from Main Roads WA which was

invoiced after FY 2018/2019

Replacement of Washbay Pressure Washer . Existing

pressure washer uneconomical to repair.

Description of project

57

Year-To-Date Revised Forecast Variance

Actual Budget Value

Particulars $ $ $ $

New 0 1,130,000 991,000 (139,000)

Lathlain Redevelopment (Zone 2) - Buildings 0 750,000 680,000 (70,000)

Lathlain Redevelopment (Zone 2x) - Buildings 0 380,000 311,000 (69,000)

Upgrade 18,157 271,000 241,000 (30,000)

Upgrade - Aqualife Solar Panels 18,157 200,000 170,000 (30,000)

Land - Upgrade: 25 Boundary Road Subdivision 0 71,000 71,000 0

Renewal 375,739 1,276,400 1,390,353 219,942

Harold Hawthorne Centre - Air Conditioning 48,149 91,400 48,149 (43,251)

Vic Park Quarter - Community Room Fitout 0 50,000 30,000

10 Kent Street - Interior Refurbishment (Disability Access) 0 35,000 20,000

Reactive Building Renewal Works Various 0 75,000 0

Administration Office - Lift Replacement 95,584 180,000 191,682

Administration Office - Underground Carpark Security 9,200 15,000 15,000

Fletcher Park - Clubrooms - Security Screen Replacement 12,329 20,000 12,329

Carlisle Reserve Clubrooms - Security Screen Replacement 8,066 15,000 8,066 (6,934)

Raphael Park Clubroom - Refurbish change rooms 0 75,000 75,000 0

Parnham Reserve Clubrooms- Security Screen Replacement 3,997 10,000 3,861 (6,139)

Higgins Park Clubroom- Security Screen Replacement 11,262 15,000 11,262 (3,738)

Aqualife - Plant Room - Ultraviolet Generators 111,436 125,000 111,436 (13,564)

Aqualife - Outdoor Pool Refurbishment 638 150,000 320,000 170,000

Aqualife - Pool Plant - Dosing Controllers 0 25,000 50,000 25,000

Aqualife - Pool Plant Equipment Renewal 9,800 10,000 10,000 0

Aqualife - Pool Water Treatment & Filtration Unit replacement 0 40,000 48,000 8,000

Aqualife - Hydrotherapy Pool scum grates 4,325 15,000 4,325 (10,675)

Parnham Reserve Clubrooms- Partition Replacement 16,243 20,000 16,243 (3,757)

Higgins Park Clubrooms - Change Room Refurbishment 0 75,000 75,000 0

Aqualife - 50m Pool Starting Blocks and Submersible Wall 44,710 235,000 215,000 (20,000)

Grandstand Replacement - Victoria Park Bowling Club 0 0 25,000 25,000

Wishing Well Restoration Works 0 0 30,000 30,000

Administration Centre – End of Trip facilities renewal 0 0 40,000 40,000

Administration Office - Relocation of Mayoral Office 0 0 30,000 30,000

Total Buildings 393,896 2,677,400 2,622,353 50,942

Capital Expense Items

Buildings

58


Actual Budget Value

Particulars $ $ $ $

Renewal 384,058 1,265,000 1,024,498 (240,502)

182 VPK - Subaru Impreza Hatch (Plant 399) 0 25,000 25,000 0

162 VPK - Road Sweeper (Plant 341) 236,574 380,000 249,050 (130,950)

138 VPK - Flocon Truck (Plant 39) 0 380,000 290,000 (90,000)

1GTF 071 - Holden Colorado (Plant 438) 0 35,000 35,000 0

1TQU 220 - Trailer (Plant 173) 0 10,000 6,000 (4,000)

157 VPK - Trailer (Plant 176) 5,064 10,000 5,064 (4,936)

174 VPK - Trailer (Plant 178) 0 10,000 10,000 0

167 VPK - Toyota Camry Altise Sedan (Plant 395) 25,783 25,000 25,783 783

115 VPK- Subaru Impreza Hatch (Plant 393) 24,967 25,000 24,967 (33)

169 VPK - Mazda 3 Sedan (Plant 388) 0 25,000 0 (25,000)

1EFZ 037 - Hyundai Sedan (Plant 334) 25,488 25,000 25,195 195

Minor Plant Renewal - Parks 9,743 23,000 23,000 0

156 VPK - Plant Trailer (Plant 171) 0 25,000 25,000 0

Jarret Mow Deck (Plant 281) 0 30,000 30,000 0

142 VPK - Kubota Tractor (Plant 280) 0 95,000 95,000 0

1EMD 522 - Mazda B250 Tray Back Ute (Plant 346) 32,557 32,000 32,557 557

1GDF 720 - Holden Colorado (Plant 415) 0 35,000 35,000 0

Washbay Pressure Washer 0 0 14,000 14,000

151 VPK - Speed Trailer (Plant 251) 0 50,000 50,000 0

173 VPK - Subaru Impreza (Plant 396) 23,882 25,000 23,882 (1,118)

Total Plant and Machinery 384,058 1,265,000 1,024,498 (240,502)


Actual Budget Value

Particulars $ $ $ $

Renewal 892 183,400 160,000 (23,400)

Administration Centre - Minor Expense - Allocation 0 33,400 0 (33,400)

Cardio Equipment Renewal (Aqualife) 892 150,000 160,000 10,000

0

Total Furniture and Equipment 892 183,400 160,000 (23,400)

Capital Expense Items (continued)

Plant and Machinery

Furniture and Equipment

59


Actual Budget Value

Particulars $ $ $ $

New 36,440 462,750 488,910 26,160

Library - RFID Self-Service System 0 90,000 90,000 0

Software - Asset Management System 846 154,000 203,160 49,160

New- Software - Volunteer Database 0 7,000 7,000 0

New - Software - CAMMS Project PoC 0 16,550 16,550 0

New - Software - Property Management System 0 30,000 12,000 (18,000)

New - Software - Human Resources - Online Leave and Work Patterns 5,927 16,500 11,500 (5,000)

IT - Relocation Hardware - 6 - 8 Kent Street (Parking and Rangers) 29,668 58,700 58,700 0

Software - Microsoft 365 0 90,000 90,000 0

Renewal 65,082 130,400 88,400 (42,000)

System - Intranet and Councillor Portal 11,500 50,400 22,400 (28,000)

Hardware - Council Chambers Live Streaming System 53,582 80,000 66,000 (14,000)

Upgrade 124,585 517,500 541,500 24,000

IT - Leisure Facilities Management System (Software) 3,218 12,300 12,300 0

IT - Library Management System (Software) 54,160 71,200 71,200 0

System Upgrade - Authority 7.x 0 140,000 140,000 0

Upgrade - Software - AP Workflow (Authority) 26,951 54,000 54,000 0

Hardware - Leisurelife Centre Technology Upgrade 0 120,000 135,000 15,000

Software - TRIM CM9 Upgrade 40,256 120,000 120,000 0

Hardware - UPS 0 0 9,000 9,000

Total Information Technology 226,107 1,110,650 1,118,810 8,160


Information Technology

60


Actual Budget Value

Particulars $ $ $ $

Renew 814,820 2,427,000 3,727,316 1,300,316

Solar Way - Mercury Street to Mercury Street - Road Rehab 0 0 335,000 335,000

Marchamley Place - Mercury Stree to Cul-de-sac - Road Rehab 0 0 155,000 155,000

Forster Avenue Traffic Calming 0 0 20,000 20,000

100 Oats St - Verge Modifications 0 0 10,000 10,000

Saleham Street (Goddard to Gallipoli) 74,785 143,000 74,785 (68,215)

Teague Street Road Rehab 725 212,000 140,000 (72,000)

Beatty Avenue (Somerset to Dane) 118,199 143,000 143,000 0

Westmorland Street (Creaton to Etwell) 11,656 67,500 67,500 0

Bishopsgate Street (Lion to Archer) 70,881 133,000 70,881 (62,119)

Cohn Street (Harris to Orrong) 0 112,500 112,500 0

Forster Avenue (Bishopsgate to Rutland) 85,632 83,000 90,513 7,513

Mackie Street (West of Gloucester to Washington) 0 93,000 93,000 0

Enfield Street (Waller to Rayment) 0 57,000 107,000 50,000

Howick Street (Gallipoli to Goddard) 0 183,600 183,600 0

Oats Street - Mars to Planet - Renew Seal (MRRG) 5,044 141,900 5,044 (136,856)

Oats Street - Tuckett to Rutland - Renew Seal (MRRG) 113,872 132,900 113,872 (19,028)

Resurface of rail crossing - Oats and Mint Streets 5,018 115,000 150,418 35,418

Oats Street and Star Street Roundabout 0 45,000 175,000 130,000

Star Street - Mid Block to Archer - Renew Seal (MRRG) 3,415 0 3,415 3,415

Harris Street - Oats Street/Mercury Street/Briggs Street 0 233,000 335,000 102,000

Briggs Street (Downing to Raleigh) Reseal 2,350 117,600 169,500 51,900

Planet Street (President to Kew) Reseal 106,685 105,000 106,685 1,685

Planet Street (Briggs to President) Reseal 133,175 120,000 140,000 20,000

Tuckett Street (Oats to Mercury) 63,782 77,000 64,000 (13,000)

Bank Street (Forward to End) 0 112,000 112,000 0

Albany Highway - Kent - Miller Roundabout - Renew Seal (MRRG) 2,754 0 2,754 2,754

Albany Highway - Service Lane to Shepperton - Renew Seal (MRRG) 5,340 0 5,340 5,340

Star Street - Mid Block to Archer - Renew Seal (MRRG) 3,415 0 3,415 3,415

Reseal - Carnarvon (Dane to Somerset) 0 0 180,000 180,000

Reseal - Planet St (Mercury to Cohn) 0 0 160,000 160,000

Reseal - Streatley (Gallipoli to Castle 0 0 190,000 190,000

Reseal - Sussex St (Devenish to Berwick 0 0 200,000 200,000

Albany Highway - Kent - Miller Roundabout - Renew Seal (MRRG) 2,754 0 2,754 2,754

Albany Highway - Service Lane to Shepperton - Renew Seal (MRRG) 5,340 0 5,340 5,340

Upgrade 3,782,360 1,931,800 (1,850,560)

Upgrade - McCartney Crescent 0 0 2,400 2,400

Rutland Avenue - Oats Street to Welshpool Road 154,977 396,510 250,000 (146,510)

Hordern and Geddes Intersection (Blackspot) 0 54,500 54,500 0

Hordern and McMillan Intersection (Blackspot) 0 92,000 92,000 0

Hill View Terrace and Oats Street - Intersection and Pedestrian 18,591 258,000 240,000 (18,000)

Roberts Road and Orrong Road - Intersection 0 220,000 25,000 (195,000)

Kent and Haymen - Stage 1 - Pavement Upgrade (Blackspot) 412,998 618,300 420,000 (198,300)

Mint and Beatty Intersection (Blackspot) 0 179,750 0 (179,750)

Archer and Orrong Intersection (Blackspot) 12,595 401,000 401,000 0

Shepperton and Miller - Stage 2 - Pavement Upgrade (Blackspot) 0 1,562,300 444,500 (1,117,800)

Star Street - Mid Block to Archer - Renew Seal (MRRG) 0 0 2,400 2,400

Total Roads 1,114,401 6,209,360 5,659,116 (550,244)


Roads

61


Actual Budget Value

Particulars $ $ $ $

New 0 247,700 217,700 (30,000)

Bishopsgate Street - Improvements (LPRP) 0 197,700 197,700 0

Various - Right of Ways - Allocation 0 50,000 20,000 (30,000)

Renewal 15,976 165,000 80,000 (85,000)

Various - Pipe Renewal- Allocation 6,320 50,000 20,000 (30,000)

Various - Pit Renewal- Allocation 0 25,000 20,000 (5,000)

Various - Sump Renewal- Allocation 3,400 50,000 20,000 (30,000)

Unplanned Renewal Projects - BUDGET ONLY Individual work orders to 6,256 40,000 20,000 (20,000)

0

Renewal 0 85,000 50,000 (35,000)

130 Burswood Road (Hot Spot 51) 0 85,000 50,000 (35,000)

Total Drainage 15,976 497,700 347,700 (150,000)


Actual Budget Value

Particulars $ $ $ $

New 99,206 1,207,055 1,322,000 114,945

Goodwood Parade - Shared Path - Surface 44,171 394,555 250,000 (144,555)

Brodie Hall Drive - De Laeter to Sarich - Surface 51,035 77,500 125,000 47,500

Rutland Avenue Shared Path (Miller to Oats) 4,000 685,000 685,000 0

Victoria Park Drive (Roger Mackay to Marlee Loop) 0 50,000 150,000 100,000

Footpath - Turner Avenue and Deleater Way 0 0 112,000 112,000

Renewal 453,209 671,000 743,000 72,000

Lathlain Redevelopment (Zone 7) - Pathways 441,995 578,000 650,000 72,000

Orrong Road (Alexander to Archer) 1,520 58,000 58,000 0

Cornwall Street (Castle Way and Gallipoli Street) 9,695 27,000 27,000 0

Gallipoli Street - Verge Widening 0 8,000 8,000 0

0

Upgrade 362,111 555,000 555,000 0

ROW52 Laneway Upgrade (IGA Laneway Revitalisation) 362,111 555,000 555,000 0

Total Pathways 914,526 2,433,055 2,620,000 186,945

Pathways


Drainage

62


Actual Budget Value

Particulars $ $ $ $

New 5,218,776 6,965,300 5,701,252 (1,264,048)

John Macmillan Park - Redevelopment 509,183 987,300 711,752 (275,548)

Lathlain Redevelopment (Zone 2) - Parks (Holding) 2,734,425 2,733,000 2,734,500 1,500

Lathlain Redevelopment (Zone 2x) - Parks (Holding) 1,975,168 3,245,000 2,245,000 (1,000,000)

George Street Reserve - Interpretive and QR Code Signage 0 0 10,000 10,000

Renewal 820,243 2,953,670 1,452,805 (1,500,865)

Harold Rossiter - Lighting Renewal 0 12,000 12,000 0

Carlisle Reserve - Pole Floodlight Renewal 888 120,000 215,000 95,000

Raphael Park - Drinking Fountain 6,000 15,000 15,000 0

Raphael Park - Reticuation System Renewal 3,850 180,000 180,000 0

Playground Renewal - Parnham Park 135 80,000 135 (79,865)

Fraser Park - Synthetic Cricket Wickets 11,073 30,000 13,000 (17,000)

Raphel Park - Synthetic Cricket Wickets 0 0 17,000 17,000

GO Edwards Park - Redevelopment 470,522 1,872,200 590,200 (1,282,000)

McCallum Park - River Wall - Foreshore Landscape 325,932 567,470 333,470 (234,000)

George Street Reserve - Revegetation Project (previously W1129) 1,844 60,000 60,000 0

Charles Patterson Park - Picnic Table and Benches 0 11,000 11,000 0

Rotary Reserve - Drinking Fountain 0 6,000 6,000 0

Upgrade 7,675 897,850 897,850 0

Upgrade - Higgins Park Tennis Club - Court Modifications 7,675 732,850 732,850 0

Bolton Avenue Verge - Retaining Wall and Fencing 0 165,000 165,000 0

Total Parks 6,046,694 10,816,820 8,051,907 (2,764,913)


Parks

63


Actual Budget Value

Particulars $ $ $ $

New 0 646,000 458,350 (187,650)

Artworks - Allocation BUDGET ONLY 2019 Specific work orders to be 0 50,000 50,000 0

Lathlain Redevelopment (Zone 2) - Public Art 0 33,000 33,000 0

Lathlain Redevelopment (Zone 2x) - Public Art 0 55,000 55,000 0

Public Art - Victoria Park Drive & Glenn Place Roundabout 0 50,000 0 (50,000)

Signage - Parking Plan Works 0 30,000 0 (30,000)

Parking - ACROD Bays - Allocation 0 10,000 2,350 (7,650)

Lathlain Redevelopment (Zone 2) - Carpark 0 303,000 303,000 0

Albany Highway CCTV (Safer Neighbourhoods) 0 100,000 0 (100,000)

Street Lighting - Safety Improvements - Allocation 0 15,000 15,000 0

Renewal 333,948 370,000 350,000 (20,000)

Car Parks - Car Park Kerbs - Allocation 0 5,000 0 (5,000)

Lathlain Redevelopment (Zone 7) - Carparks 333,948 350,000 350,000 0

Street Lighting - Albany Highway and Laneways 0 15,000 0 (15,000)

Upgrade 0 125,000 263,114 138,114

Balbuk Way Underground Power 0 125,000 263,114 138,114

Total Other Infrastructure 333,948 1,141,000 1,071,464 (69,536)


Other Infrastructure

64

Significant Accounting Policies

65

Basis of Preparation

The budget review has been prepared in accordance with applicable Australian Accounting Standards (as they apply to local government and not-for-profit

entities), Australian Accounting Interpretations, other authorative pronouncements of the Australian Accounting Standards Board, the Local Government

Act 1995 and accompanying regulations. Material accounting policies, which have been adopted in the preparation of this budget, are presented below and

have been consistently applied unless stated otherwise.

Except for cash flow and rate setting information, the budget has also been prepared on the accrual basis and is based on historical costs, modified, where

applicable, by the measurement at fair value of selected non-current assets, financial assets and liabilities.

Critical Accounting Estimates

The preparation of a budget review in conformity with Australian Accounting Standards requires management to make judgements, estimates and

assumptions that influence the application of policies and reported amounts of assets and liabilities, income and expenditure.

The estimates, and associated assumptions, are based on historical experience and various other factors that are believed to be reasonable under the

circumstances; the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent

from other sources. Actual results are likely to differ from these estimates.

The Local Government Reporting Entity

All Funds through which the Council controls resources to carry on its functions have been included in the financial statements forming part of this budget

review.

In the process of reporting on the local government as a single unit, all transactions and balances between those Funds (for example, loans and transfers

between Funds) have been eliminated.

All monies held in the Trust Fund are excluded from the financial statements. A separate statement of those monies appears in this Budget document.

Rounding Off Figures

All figures shown in this budget, other than a rate in the dollar, are rounded to the nearest dollar.

Rates, Grants, Donations and Other Contributions

Rates, grants, donations and other contributions are recognised as revenues when the local government obtains control over the assets comprising the

contributions.

Control over assets acquired from rates is obtained at the commencement of the rating period or, where earlier, upon receipt of the rates.

Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian

Taxation Office (ATO).

Receivables and payables are stated inclusive of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included

with receivables or payables in the statement of financial position.

Cash flows are presented on a Gross basis. The GST components of cash flows arising from investing or financing activities that are recoverable from, or

payable to, the ATO are presented as operating cash flows.

Significant Accounting Policies

66

Significant Accounting Policies (continued)

Superannuation

The Council contributes to a number of Superannuation Funds on behalf of employees. All funds to which the Council contributes are defined contribution

plans.

Comparative Values

Where required, comparative values have been adjusted to conform with changes in presentation for the current budget year.

Budget Comparative Values

Unless otherwise stated, the budget comparative values shown in the budget review relate to the original budget estimate for the relevant item of

disclosure.

Forecast Fair Value Adjustments

All fair value adjustments relating to remeasurement of financial assets at fair value through profit or loss (if any) and changes on revaluation of non-current

assets are impacted upon by external forces and are not able to be reliably estimated at the time of budget adoption.

Fair value adjustments relating to the remeasurement of financial assets at fair value through profit or loss will be assessed at the time they occur with

compensating budget amendments made as necessary.

It is anticipated, in all instances, any changes upon revaluation of non-current assets will relate to non-cash transactions and, as such, will have no impact on

this budget document.

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, cash at bank, deposits available on demand with banks, other short term highly liquid investments that are

readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value and bank overdrafts. Bank overdrafts are

shown as short term borrowings in current liabilities in the Net Current Asset position.

Trade and Other Receivables

Trade and other receivables include amounts due from ratepayers for unpaid rates and service charges and other amounts due from third parties for goods

sold and services performed in the ordinary course of business. Receivables expected to be collected within 12 months of the end of the reporting period

are classified as current assets. All other receivables are classified as non-current assets. Collectability of trade and other receivables is reviewed on an

ongoing basis. Debts that are known to be uncollectible are written off when identified. An allowance for doubtful debts is raised when there is objective

evidence that they will not be collectible.

Inventories

Inventories are measured at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business

less the estimated costs of completion and the estimated costs necessary to make the sale.

Land Held for Resale

Land held for development and sale is valued at the lower of cost and net realisable value. Cost includes the cost of acquisition, development, borrowing

costs and holding costs until completion of development. Finance costs and holding charges incurred after development is completed are expensed.

Gains and losses are recognised in profit or loss at the time of signing an unconditional contract of sale if significant risks and rewards, and effective control

over the land, are passed on to the buyer at this point.

Land held for sale is classified as current except where it is held as non-current based on Council’s intentions to release for sale.

67

Fixed Assets

Each class of fixed assets within either property, plant and equipment or infrastructure, is carried at cost or fair value as indicated less, where applicable,

any accumulated depreciation and impairment losses.

Mandatory Requirement to Revalue Non-Current Assets

Effective from 1 July 2012, the Local Government (Financial Management) Regulations were amended and the measurement of non-current assets at Fair

Value became mandatory.

The amendments initially allowed for a phasing in of fair value in relation to fixed assets over three years. All fixed assets have been valued and are carried

at fair value in accordance with the requirements.

The Town revalues fixed assets in accordance with the regulatory framework, or earlier if it is advantageous to do so.

Relevant disclosures, in accordance with the requirements of Australian Accounting Standards, have been made as necessary.

Initial Recognition and Measurement between Mandatory Revaluation Dates

All assets are initially recognised at cost and subsequently revalued in accordance with the mandatory measurement framework.

In relation to the initial measurement, cost is determined as the fair value of the assets given as consideration, plus costs incidental to the acquisition. For

assets acquired at no cost, or for nominal consideration, cost is determined as fair value at the date of acquisition. The cost of non-current assets

constructed by Council includes the cost of all materials used in the construction, direct labour on the project and an appropriate proportion of fixed and

variable overheads.

Individual assets acquired between initial recognition and the next revaluation of the asset class, in accordance with the mandatory measurement

framework, are carried at cost less accumulated depreciation as management believes this approximates fair value. They will be subject to subsequent

revaluation at the next anniversary date, as prescribed.

Revaluation

Increases in the carrying amount arising on revaluation of assets are credited to a revaluation surplus in equity. Decreases that offset previous increases of

the same asset are recognised against revaluation surplus directly in equity. All other decreases are recognised in profit or loss.

Land Under Roads

In Western Australia, all land under roads is Crown land, the responsibility for managing which, is vested in the local government. Effective as at 1 July 2008,

Council elected not to recognise any value for land under roads acquired on or before 30 June 2008. This accords with the treatment available in Australian

Accounting Standard AASB 1051 Land Under Roads and the fact Local Government (Financial Management) Regulations Regulation 16(a)(i) prohibits local

governments from recognising such land as an asset.

In respect of land under roads acquired on or after 1 July 2008, as detailed above, Local Government (Financial Management) Regulations Regulation

16(a)(i) prohibits local governments from recognising such land as an asset. Whilst such treatment is inconsistent with the requirements of AASB 1051, Local

Government (Financial Management) Regulations Regulation 4(2) provides, in the event of such an inconsistency, the Local Government (Financial

Management) Regulations prevail.

Consequently, any land under roads acquired on or after 1 July 2008 is not included as an asset of the Council.

Depreciation

The depreciable amount of all fixed assets including buildings but excluding freehold land, are depreciated on a straight-line basis over the individual asset’s

useful life from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the

lease or the estimated useful life of the improvements.


68


Major Depreciation Periods

Major depreciation periods used for each class of depreciable asset are:

• Buildings - 30 to 50 years

• Furniture and Equipment - 4 to 10 years

• Information Technology - 3 to 10 years

• Plant and Machinery - 5 to 15 years

• Sealed roads and streets

- Formation - not depreciated

- Pavement - 50 years

• Parks and Reserves - 10 years

• Pathways - 20 years

• Water supply piping and drainage system - 75 years

The asset residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. An asset’s carrying amount is

written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. Gains and losses on

disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in profit or loss in the period which they

arise.

Capitalisation Threshold

Expenditure on items of assets under $5,000 is not capitalised individually. Rather, it is recorded as an asset in the relevant low value asset pool.

Fair Value of Assets and Liabilities

When performing a revaluation, the Council uses a mix of both independent and management valuations using the following as a guide:

Fair Value is the price that Council would receive to sell the asset or would have to pay to transfer a liability, in an orderly (i.e. unforced) transaction

between independent, knowledgeable and willing market participants at the measurement date. As fair value is a market-based measure, the closest

equivalent observable market pricing information is used to determine fair value. Adjustments to market values may be made having regard to the

characteristics of the specific asset. The fair values of assets that are not traded in an active market are determined using one or more valuation techniques.

These valuation techniques maximise, to the extent possible, the use of observable market data. To the extent possible, market information is extracted

from either the principal market for the asset (i.e. the market with the greatest volume and level of activity for the asset or, in the absence of such a

market, the most advantageous market available to the entity at the end of the reporting period (i.e. the market that maximises the receipts from the sale

of the asset after taking into account transaction costs and transport costs). For non-financial assets, the fair value measurement also takes into account a

market participant’s ability to use the asset in its highest and best use or to sell it to another market participant that would use the asset in its highest and

best use.

Fair Value Hierarchy

AASB 13 requires the disclosure of fair value information by level of the fair value hierarchy, which categorises fair value measurement into one of three

possible levels based on the lowest level that an input that is significant to the measurement can be categorised into as follows:

• Level 1 - Measurements based on quoted prices in active markets for identical assets or liabilities that the entity can readily access.

• Level 2 - Measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability.

• Level 3 - Measurements based on unobservable inputs for the asset or liability.

The fair values of assets and liabilities that are not traded in an active market are determined using one or more valuation techniques. These valuation

techniques maximise, to the extent possible, the use of observable market data. If all significant inputs required to measure fair value are observable, the

asset or liability is included in Level 2. If one or more significant inputs are not based on observable market data, the asset or liability is included in Level 3.

69

Valuation Techniques

The Council selects a valuation technique that is appropriate in the circumstances and for which sufficient data is available to measure fair value. The

availability of sufficient and relevant data primarily depends on the specific characteristics of the asset or liability being measured. The valuation techniques

selected by the Council are consistent with one or more of the following valuation approaches:

• Market approach - Valuations that use prices and other relevant information generated by market transactions for similar assets.

• Income approach - Valuations that convert estimated cash flows or income and expenses into a single discounted present value.

• Cost approach - Valuations that reflect the current replacement cost of an asset at its current service capacity.

Each valuation technique requires inputs that reflect the assumptions that buyers and sellers would use when pricing the asset or liability, including

assumptions about risks. When selecting a valuation technique, the Council gives priority to those techniques that maximise the use of observable inputs

and minimise the use of unobservable inputs. Inputs that are developed using market data (such as publicly available information on actual transactions)

and reflect the assumptions that buyers and sellers would generally use when pricing the asset or liability and considered observable, whereas inputs for

which market data is not available and therefore are developed using the best information available about such assumptions are considered unobservable.

As detailed above, the mandatory measurement framework imposed by the Local Government (Financial Management) Regulations requires, as a

minimum, all assets carried at a revalued amount to be revalued at least every 3 years.

Financial Instruments Initial Recognition and Measurement

Financial assets and financial liabilities are recognised when the Council becomes a party to the contractual provisions to the instrument. For financial

assets, this is equivalent to the date that the Council commits itself to either the purchase or sale of the asset (i.e. trade date accounting is adopted).

Financial instruments are initially measured at fair value plus transaction costs, except where the instrument is classified ‘at fair value through profit or loss’,

in which case transaction costs are expensed to profit or loss immediately.

Financial Instruments Impairment

A financial asset is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or more events (a “loss event”) having

occurred, which has an impact on the estimated future cash flows of the financial asset(s).

In the case of available-for-sale financial assets, a significant or prolonged decline in the market value of the instrument is considered a loss event.

Impairment losses are recognised in profit or loss immediately. Also, any cumulative decline in fair value previously recognised in other comprehensive

income is reclassified to profit or loss at this point.

In the case of financial assets carried at amortised cost, loss events may include: indications that the debtors or a group of debtors are experiencing

significant financial difficulty, default or delinquency in interest or principal payments; indications that they will enter bankruptcy or other financial

reorganisation; and changes in arrears or economic conditions that correlate with defaults.

For financial assets carried at amortised cost (including loans and receivables), a separate allowance account is used to reduce the carrying amount of

financial assets impaired by credit losses. After having taken all possible measures of recovery, if management establishes that the carrying amount cannot

be recovered by any means, at that point the written-off amounts are charged to the allowance account or the carrying amount of impaired financial assets

is reduced directly if no impairment amount was previously recognised in the allowance account.

Financial Instruments Derecognition

Financial assets are derecognised where the contractual rights for receipt of cash flows expire or the asset is transferred to another party, whereby the

Council no longer has any significant continual involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where

the related obligations are discharged, cancelled or expired. The difference between the carrying amount of the financial liability extinguished or

transferred to another party and the fair value of the consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in

profit or loss.


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Financial Instruments Classification and Subsequent Measurement

Financial instruments are subsequently measured at fair value, amortised cost using the effective interest rate method, or cost.

Amortised cost is calculated as:

(a) the amount in which the financial asset or financial liability is measured at initial recognition;

(b) less principal repayments and any reduction for impairment; and

(c) plus or minus the cumulative amortisation of the difference, if any, between the amount initially recognised and the maturity amount calculated using

the effective interest rate method.

The effective interest method is used to allocate interest income or interest expense over the relevant period and is equivalent to the rate that discounts

estimated future cash payments or receipts (including fees, transaction costs and other premiums or discounts) through the expected life (or when this

cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or financial liability.

Revisions to expected future net cash flows will necessitate an adjustment to the carrying value with a consequential recognition of an income or expense

in profit or loss.

(i) Financial assets at fair value through profit and loss

Financial assets are classified at “fair value through profit or loss” when they are held for trading for the purpose of short term profit taking. Assets in this

category are classified as current assets. Such assets are subsequently measured at fair value with changes in carrying amount being included in profit or

loss.

(ii) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently

measured at amortised cost. Gains or losses are recognised in profit or loss.

Loans and receivables are included in current assets where they are expected to mature within 12 months after the end of the reporting period.

(iii) Held-to-maturity investments

Held-to-maturity investments are non-derivative financial assets with fixed maturities and fixed or determinable payments that the Council’s management

has the positive intention and ability to hold to maturity. They are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss.

Held-to-maturity investments are included in current assets where they are expected to mature within 12 months after the end of the reporting period. All

other investments are classified as non-current.

(iv) Available-for-sale financial assets

Available-for-sale financial assets are non-derivative financial assets that are either not suitable to be classified into other categories of financial assets due

to their nature, or they are designated as such by management. They comprise investments in the equity of other entities where there is neither a fixed

maturity nor fixed or determinable payments.

They are subsequently measured at fair value with changes in such fair value (i.e. gains or losses) recognised in other comprehensive income (except for

impairment losses). When the financial asset is derecognised, the cumulative gain or loss pertaining to that asset previously recognised in other

comprehensive income is reclassified into profit or loss. Available-for-sale financial assets are included in current assets, where they are expected to be sold

within 12 months after the end of the reporting period. All other available for sale financial assets are classified as non-current.

(v) Financial liabilities

Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost. Gains or losses are recognised in the profit

or loss.

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Impairment of Assets

In accordance with Australian Accounting Standards the Council’s assets, other than inventories, are assessed at each reporting date to determine whether

there is any indication they may be impaired. Where such an indication exists, an impairment test is carried out on the asset by comparing the recoverable

amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, to the asset’s carrying amount. Any excess of the asset’s

carrying amount over its recoverable amount is recognised immediately in profit or loss, unless the asset is carried at a revalued amount in accordance with

another standard (e.g. AASB 116) whereby any impairment loss of a revalued asset is treated as a revaluation decrease in accordance with that other

standard. For non-cash generating assets such as roads, drains, public buildings and the like, value in use is represented by the depreciated replacement

cost of the asset. At the time of adopting this budget, it is not possible to estimate the amount of impairment losses (if any) that may occur. In any event, an

impairment loss is a non-cash transaction and consequently, has no impact on this budget document.

Trade and Other Payables

Trade and other payables represent liabilities for goods and services provided to the Council prior to the end of the financial year that are unpaid and arise

when the Council becomes obliged to make future payments in respect of the purchase of these goods and services. The amounts are unsecured, are

recognised as a current liability and are normally paid within 30 days of recognition.

Employee Benefits

a) Short-Term Employee Benefits

Provision is made for the Council’s obligations for short-term employee benefits. Short-term employee benefits are benefits (other than termination

benefits) that are expected to be settled wholly before 12 months after the end of the annual reporting period in which the employees render the related

service, including wages, salaries and sick leave. Short-term employee benefits are measured at the (undiscounted) amounts expected to be paid when the

obligation is settled.

The Council’s obligations for short-term employee benefits such as wages, salaries and sick leave are recognised as a part of current trade and other

payables in the statement of financial position. The Council’s obligations for employees’ annual leave and long service leave entitlements are recognised as

provisions in the statement of financial position.

b) Other Long-Term Employee Benefits

Provision is made for employees’ long service leave and annual leave entitlements not expected to be settled wholly within 12 months after the end of the

annual reporting period in which the employees render the related service. Other long-term employee benefits are measured at the present value of the

expected future payments to be made to employees. Expected future payments incorporate anticipated future wage and salary levels, durations or service

and employee departures and are discounted at rates determined by reference to market yields at the end of the reporting period on government bonds

that have maturity dates that approximate the terms of the obligations. Any re-measurements for changes in assumptions of obligations for other long-

term employee benefits are recognised in profit or loss in the periods in which the changes occur.

The Council’s obligations for long-term employee benefits are presented as non-current provisions in its statement of financial position, except where the

Council does not have an unconditional right to defer settlement for at least 12 months after the end of the reporting period, in which case the obligations

are presented as current provisions.

Borrowing Costs

Borrowing costs are recognised as an expense when incurred except where they are directly attributable to the acquisition, construction or production of a

qualifying asset. Where this is the case, they are capitalised as part of the cost of the particular asset until such time as the asset is substantially ready for

its intended use or sale.

Provisions

Provisions are recognised when the Council has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of

economic benefits will result and that outflow can be reliably measured. Provisions are measured using the best estimate of the amounts required to settle

the obligation at the end of the reporting period.


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Leases

Leases of fixed assets, where substantially all the risks and benefits incidental to the ownership of the asset, but not legal ownership, are transferred to the

Council, are classified as finance leases.

Finance leases are capitalised recording an asset and a liability at the lower amounts equal to the fair value of the leased property or the present value of

the minimum lease payments, including any guaranteed residual values. Lease payments are allocated between the reduction of the lease liability and the

lease interest expense for the period.

Leased assets are depreciated on a straight live basis over the shorter of their estimated useful lives or the lease term.

Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses in the periods in which

they are incurred.

Lease incentives under operating leases are recognised as a liability and amortised on a straight line basis over the life of the lease term.

Investment in Associates

An associate is an entity over which the Council has significant influence. Significant influence is the power to participate in the financial operating policy

decision of that entity however it is not control or joint control of those policies. Investments in associates are accounted for in the financial statements by

applying the equity method of accounting, whereby the investment is initially recognised at cost and adjusted thereafter for the post-acquisition change in

the share of net assets of the associate by the Council. In addition, the Council share of profit or loss of the associate is included in the Council's profit and

loss.

The carrying amount of the investment includes, where applicable, goodwill relating to the associate. Any discount on acquisition, whereby the Council's

share of net fair value of the associate exceeds the cost of investment, is recognised as profit or loss in the period in which the investment is acquired.

Profits and losses resulting from transaction between the Council and the associate are eliminated to the extent the of the Council's interest in the

associate. When the Council's share of losses in an associate equals or exceeds the interest in the associate, the Council discontinues recognising its share of

further losses unless it has incurred legal or constructive obligations or made payments on behalf of the associate. When the associate subsequently makes

profits, the Council will resume recognising its share of those profits once its share of the profits equals the share of the losses not recognised.

Interests in Joint Arrangements

Joint arrangements represent the contractual sharing of control between parties in a business venture where unanimous decisions about relevant activities

are required.

Separate joint venture entities providing joint venturers with an interest to net assets are classified as a joint venture and accounted for using the equity

method.

Joint venture operations represent arrangements whereby joint operators maintain direct interests in each asset and exposure to each liability of the

arrangement. The Council’s interests in the assets, liabilities, revenue and expenses of joint operations are included in the respective line items of the

financial statements.

Current and Non-Current Classification

In the determination of whether an asset or liability is current or non-current, consideration is given to the time when each asset or liability is expected to

be settled. The asset or liability is classified as current if it is expected to be settled within the next 12 months, being the Council’s operational cycle. In the

case of liabilities where the Council does not have the unconditional right to defer settlement beyond 12 months, such as vested long service leave, the

liability is classified as current even if not expected to be settled within the next 12 months. Inventories held for trading are classified as current even if not

expected to be realised in the next 12 months except for land held for sale where it is held as non-current based on the Council’s intentions to release for

sale.

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annual budget review · 12/31/2019 · account groupings year-to-date revised forecast variance...

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